By Sizwe Dlamini
The Secretary General of the Common Market for Eastern and Southern Africa (COMESA), Chileshe Kapwepwe, has revealed that intra-COMESA trade increased from E26.5 billion ($1.5 billion) in 2000 to E247 billion ($14 billion) in 2023.
She announced this at the opening ceremony of the 44th Meeting of the Bureau of the COMESA Committee of Governors of Central Banks, held in Ezulwini, Eswatini on November 6, 2024.
Kapwepwe began her address by thanking the Central Bank of Eswatini (CBE) Governor, Dr. Phil Mnisi, for inviting COMESA to the aforementioned meeting and congratulated him for successfully chairing the COMESA Committee of Governors of Central Banks and its Bureau over the past year.
She then emphasized that the growth in intra-COMESA trade is part of the region’s broader strategy to enhance economic integration and inclusivity. She highlighted that COMESA has worked on various trade facilitation instruments aimed at overcoming barriers and accelerating intra-regional trade and investment.
“COMESA has made significant strides in regional integration and trade facilitation. Intra-COMESA trade has grown tremendously from just $1.5 billion in 2000 to $14 billion in 2023. Despite these gains, intra-COMESA trade still represents a modest 7% of the region’s total trade, which remains significantly smaller compared to the trade that the region conducts with the outside world,” Kapwepwe noted.
Kapwepwe also acknowledged the significant challenges confronting the region, including geopolitical tensions, climate-related disruptions, and the global cost-of-living crisis. These challenges, she said, are placing considerable pressure on COMESA economies, as well as on global supply chains, inflation rates, and financial markets.
“The geopolitical tensions, adverse climate events, and the cost-of-living crisis pose risks to our economies and integration efforts. These shocks are straining our regional economies and have resulted in persistent disruptions in global supply chains, inflation, and increased volatility in financial markets,” Kapwepwe said.
She further pointed out that these challenges are exacerbating exchange rate pressures in developing countries, heightening debt vulnerability, and contributing to rising domestic inflation. In response to these issues, Kapwepwe urged regional leaders and central banks to remain vigilant and proactive.
“It is imperative that we remain vigilant and proactive in addressing these challenges. As central banks, you have a responsibility to incorporate these risks into your monetary policy frameworks and to support sustainable development initiatives that mitigate these effects,” she stressed.
Kapwepwe called for heightened efforts to ensure continued monetary and economic integration within COMESA, even amidst these global challenges.
She also highlighted the critical role that COMESA’s institutions, particularly the COMESA Monetary Institute (CMI) and the COMESA Clearing House (CCH), play in advancing regional economic integration and financial stability.
The Secretary-General further commended the progress made by both institutions in their efforts to support COMESA’s monetary and financial integration objectives. Kapwepwe noted that the CMI continues to enhance the capacity of central bank staff through various training programs focused on improving macroeconomic management and financial system stability.
Kapwepwe also emphasized the importance of the COMESA Clearing House’s Regional Payments and Settlement System (REPSS), which ensures efficient and cost-effective payments and settlements for intra-COMESA trade.
“REPSS is a vital tool in expanding intra-COMESA trade, and I urge all member central banks to expeditiously utilize REPSS for payments of intra-COMESA transactions. By working collaboratively, we will ensure that REPSS contributes significantly to the growth of regional trade,” she added.